Fly Play hf.: Massive improvement in revenues and passenger numbers accompanied by load factor increase

• PLAY airlines revenues increased by 66% between years, from USD 33 million in Q1 in 2023 to USD 54 million in Q1 2024 despite capacity increase of 63%.
  
  
• PLAY’s cash position was USD 17.1 million at the end of Q1. PLAY has since received USD 32 million following a share capital increase and will go into the summer season with a healthy cash position. Uplisting to Nasdaq Iceland Main Market is in process as planned.
  
  
• PLAY carried 349 thousand passengers in Q1 2024, which is a 64% increase from Q1 2023.
  
  
• The load factor increased at the same time, from 78.4% in Q1 2023 to 81.8% in Q1 2024.
  
  
• Q1 was operationally successful with an on-time performance of 87.8%, which is a considerably better performance than with the airline’s main competitor.
  
  
  
• Earnings before interest and taxes (EBIT) in Q1 were negative USD 20.4 million. EBIT was negatively impacted by inaccurate news coverage of seismic activities in the Reykjanes Peninsula.

• Total revenue per available seat kilometer (TRASK) was 4.2 US cents, same as during Q1 2023.
  
  
• Cost per available seat kilometer (CASK) was 5.9 US cents in Q1 2024, which is 8% less than in Q1 2023 mainly due to favorable trends in ETS prices impacting fuel expenses positively.
  
  
• CASK ex-fuel is down 4.2% YoY and was 4.3 US cents.
  
  
• Yield was USD 151 driven by strong ancillary revenue per passenger of USD 50.
  
  
  

Einar Örn Ólafsson, CEO

The Q1 2024 results were in line with our expectations. The results were heavily impacted by a drop in demand following the inaccurate global news coverage on seismic activity in the Reykjanes Peninsula in Q4 2023. We had reported that this would negatively affect our outcome and now the results are in.

Despite this, we saw positive signs in our operations and sales. Demand started picking up drastically in January 2024 and we had record sales days in Q1 which have resulted in a healthy forward booking status. Our total revenues increased 66% between years, from USD 33 million in Q1 2023 to USD 54 million in Q1 2024. This is a true sign of how our airline is becoming more known and gaining market share.

The motto at PLAY airlines is to keep costs low so we can continue to offer competitive airfares. In Q1 we saw our CASK decreasing 8% compared to Q1 2023 and the CASK ex-fuel also trended in the right direction for us. Our team remains focused on keeping our business lean.

Operationally Q1 can be very challenging in Iceland due to weather conditions. Still, we saw an exceptional on-time performance of 87.8%, which is above our target of 85% on-time performance for the full year. This is something to be proud of and I am grateful for the tremendous job my colleagues at PLAY have done to deliver these results.

In Q1, PLAY received subscription commitments from existing shareholders and other investors which amounted to USD 32 million. PLAY is therefore in a strong financial position to achieve its goals.

The truly vital summer season is ahead of us, and I am looking forward to working with my colleagues at PLAY to deliver exceptional service to our passengers.

Operating statistics		Q1 2024	Q1 2023	Change
Number of flights	no.	2,317	1,455	862
Number of operating destinations	no.	29	18	11
Number of aircraft in operation	no.	10	8	2
Percentage of arrivals on time (OTP)	%	88%	86%	2 ppt
Number of passengers	000s	349	212	64%
Available seat kilometers (ASK)	mill	1,280	785	63%
Revenue passenger kilometers (RPK)	mill	1,046	615	70%
Stage length (km)	no.	2,994	2,887	4%
Load factor	%	82%	78%	3 ppt
Seats available	000s	426	270	58%
Income statement
Operating revenue	USD mill	54.4	32.7	21.7
Operating expenses	USD mill	59.4	39.7	19.7
EBIT	USD mill	-20.4	-17.3	-3.1
EBIT margin	%	-38%	-53%	15 ppt
Net operating results	USD mill	-21.7	-17.8	-3.9
Balance sheet
Cash and cash equivalents (incl. restricted)	USD mill	17.2	37.6	-20.4
Share information
Share price at period-end	Per share	4.6	11.5	-6.9
Key statistics
Airfare per passenger	USD	101	109	-7%
Ancillary per passenger	USD	50	41	22%
Yield per passenger	USD	151	150	1%
TRASK	US cents	4.2	4.2	0%
CASK (incl. Fuel & emissions)	US cents	5.9	6.4	-8%
CASK (excl. Fuel & emissions)	US cents	4.3	4.5	-4%
CO₂ per RPK (grams CO₂ per RPK)	no.	62	64	-3%
CO₂ emissions in tons from jet fuel	no.	64,710	39,811	63%

World-class on-time performance and new destinations

PLAY airlines carried 349 thousand passengers in Q1 2024, compared to 212 thousand in Q1 2023, which is a 64% increase between years. This increase is notable because PLAY´s load factor increased significantly between years, from 78.4% in Q1 2023 to 81.8% in Q1 2024.

Of all the passengers flying with PLAY in Q1 2024, 27% were traveling from Iceland, 36% were going to Iceland and 37% were connecting passengers (VIA).

Q1 was operationally successful. PLAY had an 87.8% on-time performance in the quarter, which is beyond the airline’s full-year target of 85%.

PLAY launched ticket sales to five new destinations in its route network in Q1. PLAY will be starting scheduled flights to Madeira, Marrakech, Vilnius and Split in 2024 and will do a six-week schedule to Cardiff in the fall. Additionally, PLAY will operate one flight to the winter wonderland of Rovaniemi in Finland in December.

Financials

Total revenue for Q1 is USD 54 million, compared to USD 33 million last year, up 66% between years at the same time as ASK increased 63%. Ancillary revenue increased 126% compared to Q1 2023.

Cost per available seat kilometer (CASK) decreased by nearly 8%, from 6.4 in Q1 2023 to 5.9 in Q1 2024. Cost per available seat kilometer excluding fuel (CASK EX-FUEL) was 4.3 in Q1 2024 compared to 4.5 in Q1 2023.

Total revenue per available seat kilometer (TRASK) was 4.2 in Q1 2024, compared to 4.2 in Q1 in 2023.

Earnings before interest and taxes (EBIT) was negative USD 20.4 million in Q1 2024, compared to negative USD 17.3 million in Q1 2023. The EBIT loss in Q1 2024 was in line with PLAY´s forecast and was heavily affected by inaccurate news coverage of seismic activity in the Reykjanes Peninsula in Q4 2023. EBIT margin improved by 15.4 percentage points year-on-year.

PLAY’s cash position was USD 17.1 million by the end of Q1 2024. Additionally, PLAY received USD 32 million in Q1 from a successful share capital increase.

Outlook

PLAY’s outlook for 2024 remains unchanged. The fleet will consist of 10 aircraft for the full year, ex-fuel CASK is expected to increase circa 3% annually. EBIT will be approximately zero for the full year and cash flow will improve year-on-year.

Further Information:

PLAY is continuously developing its disclosure strategy and will present a condensed version of the quarterly results.

CEO Einar Örn Ólafsson will present the company’s results on Wednesday, April 24, at 4:15 p.m. (GMT). The presentation will be streamed in English via webcast: https://www.flyplay.com/financial-reports-and-presentations.

Financial Calendar

• Q2 2023 25 July 2024
• Q3 2023 24 October 2024
• Q4 2023 7 February 2025
  
  

Attachments

• Fly Play hf. 1Q2024_Investor presentation
• Fly Play hf. Q1 2024 English

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